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Imperial Oil announces third-quarter financial and operating results
| Calgary, AB, October 30, 2007
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Imperial Oil today announced net income for the third quarter of $816 million or $0.88 a share, compared with $822 million or $0.84 a share for the same period last year. Net income for the first nine months of 2007 was $2,302 million or $2.45 a share, versus $2,250 million or $2.28 a share for the first nine months of 2006.
Third quarter earnings were essentially equal to those in the same period in 2006 and positively impacted by higher crude oil realizations, higher Syncrude volumes, and favourable refinery operations and inventory effects. Higher gains from asset divestments also contributed to earnings. Offsetting these factors were lower natural gas, conventional crude oil and natural gas liquids volumes, lower Cold Lake heavy oil realizations as well as weaker industry refining margins. A stronger Canadian dollar also negatively impacted earnings.
Operating revenues were $6,306 million in the third quarter, compared with $6,612 million in the corresponding period last year. Capital and exploration expenditures were $245 million in the third quarter, compared with $263 million during the same quarter of 2006. For the first nine months of 2007, the amount was $661 million, versus $868 million in the same period a year ago. During the third quarter of 2007, the company repurchased about 12.8 million shares for $600 million. At September 30, the company's balance of cash and marketable securities was $2,223 million, compared with $2,158 million at the end of 2006.
"We had a solid third quarter with record production levels at Syncrude and Cold Lake. A significant resource recovery technology at Cold Lake was also advanced. We continue with a strong focus to mitigate costs brought on by the cumulative impact of global materials cost escalation, a rising Canadian dollar and various new policies and regulations directed at the oil and gas industry. The recently announced Alberta royalty plan will add to these costs and investment pressures," said Tim Hearn, Imperial's chairman, president and chief executive officer.
Click here to read our interim report that includes the news release, highlights and items of interest, management's discussion and analysis, and financial statements.
Imperial Oil is one of Canada’s largest corporations and a leading member of the country’s petroleum industry. It is one of Canada’s largest producers of crude oil and natural gas, is the country’s largest petroleum refiner, and has a leading market share in petroleum products sold through a coast-to-coast supply network that includes close to 2,000 service stations.
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